MARKETING IN INDIAKenneth LoweSwarupa RaniSravan Reddy

Joseph Cherian

What is formula one?

• The highest class of single seater auto racing

• The "formula" designation in the name refers to a

set of rules with which all participants' cars must

comply

• Formula One cars are considered to be the fastest

circuit-racing cars in the world

• “Auto racing, bull fighting, and mountain climbing

are the only real sports ... all others are games.” –

Ernest Hemingway

In the ET:

Notice the Strategic use of the Capable Speed of the Cars, Distance Covered and Time

Why F1 for India?

• Prestigious moment for the nation

• Increase footfall of tourists especially after terrorists

attacks (Give foreigners another reason to come to India)

• China also has an F1 Circuit, India needs to stay on the

same competitive level as China is at.

Why India for F1?

• India is an emerging market with a huge sports fanatics

to tap such a market will increase revenues of FIA

• If an international sport is thinking to survive and thrive

long-term, India (and China - two of the growing

economies and two largest population) will always be on

the radar

Sponsors for Grand Prix 2011

Title sponsor : Airtel - The first time an Indian company (Airtel) has chosen to divert sponsorship funds from cricket to motorsport

Official ticketing partner : Bookmyshow.com

Other Sponsors:• Hero MotoCorp – Endorses Narain Karthikeyan• Mercedes - Mercedes with Jaypee Sports will also be setting up a driving academy at the circuit after the Indian Grand Prix to nurture the home grown racing talent• Puma - The official merchandise partner for the Indian Grand Prix, Buddh International Circuit• Amul - The official partner of Sauber F1 team• TAG Heuer - Limited edition watch for the Grand Prix

Media promotion

• 85% of total income comes from sponsors and 15%

from TV revenue

• 14 per cent growth in the $40-billion sports

marketing business

• ESPN sold 800 advertising seconds@ INR 1.5 lakh

per 10-second slot during the race

• Besides showcasing engines and putting an F1 car

on display, the auto makers have also planned a host

of competitions at various malls wherein F1 tickets

can be won

• TV, Radio, Newspaper, Music Concerts, Social

Networking Sites, pubs and Restaurants, Malls,

Internet, Billboards, Contests

Celebrities adding The Glamour Quotient

• Sachin Tendulkar: Flagging the finish

• Sourav Ganguly : Appointed as the brand ambassador of the Sahara Force India racing team

• Lady Gaga performed at the closing ceremony

• Metallica performed in concert for the first time in India since their inception 20 years ago

• Shahrukh Khan, Preity Zinta and Bipasha Basu, Arjun Rampal and many bollywood actors/actresses watched the event Live!!

Co-Branding

Pepsi - Contract which allowed to sell only Pepsi

inside the circuit

Vodafone - Ambush Marketing

Airtel - Title Sponsor of the event “Airtel Indian

Grand Prix”

Puma – Sells official F1, Indian Grand Prix clothing

Tag-Heuer – Sells limited edition Indian Grand prix

watches

Marlboro Cigarettes -

Reebok -

Nike -

Inkfruit.com – Online sale of limited edition T-shirts

Place

• Initially Bangalore, New Delhi, Hyderabad or

Mumbai were the options

• Greater Noida was selected as it was seen as

India’s first world city

• An ideal place to show off an ideal, developed

India to the Crème de la Crème that would attend

the event

• An Attraction for FII

STPTargeting Engineers, Sports Fanatics, Socially active people, Motor Sport fans and Investors outside India

Currently consumers look at cars as a means of getting around, They look for the most cost and fuel efficient cars in the market.

The event was positioned as a premium, exclusive sport that represents cutting-edge technology, reliability, speed, efficiency, teamwork, high performance, innovation, dynamism, fun and glamour (Positive values that companies can spend decades trying to associate with their brands)

With the Force India F1 team in the sport and emotional quotient is brought our in the positioning and promotions

Impact of F1

• The most viewed F1 race in India ever

• The Indian Grand Prix has the potential to

generate around $170 million in revenue and

employ as many as 10,000 people.

• India is not only about Cricket

• A substitute for cricket

• India is now one of the few privileged countries

that has it’s own F1 track

Formula 1 India: FAD or Fashion?

The tickets are extremely expensive, Yet the sport receives strong commercial support from brands eager to link themselves with the glamour and prestige associated with the event

The Sport is set for the elite and since the Indian Dream is to make it big, Attendance at this annual event creates as sense of stature

The Huge cost for maintenance for a two day event and the fact that break even will be achieved only after 4 years may say otherwise

Team Force India is creating an environment of National Pride as shown at Cricket matches